General Motors and Ford Motor have spent more than a century fighting for bragging rights on racetracks, dealership lots and American highways.
Now Detroit’s oldest corporate rivalry is expanding into military production and the increasingly valuable energy storage market.
Both automakers are pursuing United States military contracts after the Trump administration urged American companies to put their industrial expertise behind the nation’s armed forces.
Their early efforts center largely on military vehicles, though the opportunities could broaden as Washington rebuilds domestic manufacturing capacity.
At the same time, GM and Ford are moving into energy storage systems, which use technology similar to electric vehicle batteries to supply power for homes, businesses, utilities and data centers.
That pivot gives Detroit a chance to salvage value from battery plants built for an electric vehicle boom that never matched the hype.
“They’re looking for new verticals,” Morningstar senior equity analyst David Whiston said.
“Ford’s following GM’s lead into defense, and energy makes a lot of sense because you have all this EV capacity that now you don’t need. So instead of selling those factories, it’s a way to try and capitalize on the data center boom.”
Neither military work nor energy storage is expected to rival traditional vehicle sales anytime soon. Still, both sectors could diversify revenue as American auto sales slow and manufacturers search for profitable uses for expensive plants and equipment.
“It’ll be hard to move the needle here massively, given the auto business’s top line, but it certainly can be helpful,” Whiston said.
The global energy storage market could grow from $668.7 billion in 2024 to $5.12 trillion by 2034, according to Global Market Insights.
“We’re seeing this huge projection of growth, and it’s already started growing,” said Devon Wilson of LG Energy Solution’s United States energy storage division.
“There’s a massive amount of just fundamental electricity need within the country.”
GM currently participates through several channels, including its Ultium Cells venture in Tennessee, which produces cells for LG Energy Solution.
Its military arm offers storage capabilities, while the company’s energy unit provides residential charging and storage products.
GM is also developing sodium ion batteries with Denver based Peak Energy and working with Redwood Materials to reuse large electric vehicle batteries.
GM battery executive Kurt Kelty said, “We’re developing the cells right now. The performance on these cells is tremendous.”
“The ESS market is a very attractive market. It’s a big market. It’s growing very quickly, and it’s something that we can contribute to,” Kelty added.
For GM, that means turning costly battery expertise into something customers may actually buy at scale.
Ford announced plans in December to spend $2 billion launching an energy business. The company intends to convert a Kentucky battery factory built with SK On for energy storage production by late 2027, while dedicating space at its Marshall, Michigan, facility to residential storage cells.
“Investors see value in Ford’s ESS business,” Morgan Stanley analyst Andrew Percoco wrote, calling it an “underappreciated driver” in Ford’s effort to make its Model e operation profitable. That segment expects $4 billion in losses during 2026 before reaching breakeven by 2029.
Ford Chief Executive Jim Farley said the company is in the “third inning” of selling its planned 20 gigawatt hours of storage capacity. Ford already has a five year framework agreement with EDF Power Solutions North America.
GM holds a sizable head start in military work after reviving its military unit in 2017 following a 14 year absence. The Army recently awarded GM a potentially billion dollar infantry squad vehicle contract, depending on congressional funding.
“Leveraging the capabilities, the scalability and the manufacturing abilities that come with all of the automotive companies and their tiered supplier is a huge benefit,” said Alfred Grein of the Army Combat Capabilities Development Command Ground Vehicle Systems Center.
Domestic production also reduces reliance on foreign controlled supply chains for sensitive military systems.
GM expects military revenue to approach $700 million in 2026 and is building a larger backlog. “We are also working with Lockheed Martin and other leading companies to expand speed, scale and resilience in the defense industrial base,” GM Chief Executive Mary Barra said.
“Over time, all of this should make GM Defense a more meaningful and diversified contributor to our earnings,” Barra added.
Grein said the Trump administration has made military contracting more accessible to new industrial participants, including automakers.
“Obviously, the concern about foreign entities’ involvement in particularly Department of War product becomes more and more crucial,” Grein said.
GM and Ford have also received prototype contracts for heavier infantry squad vehicles.
Ford has disclosed fewer details, though it recently joined General Dynamics Land Systems and Ricardo to compete for Britain’s Light Mobility Vehicle program.
“We already dominate in that market in the commercial world. We want to offer the U.S. government the same advantages that our commercial customers get,” Farley said.
“It’s a great opportunity for us. … We are discussing, continue to discuss, additional defense related projects with the U.S. government,” Farley added.
From the Arsenal of Democracy to today’s battlefields and power grid, Detroit’s rivalry is once again becoming a matter of national strength.
